Norwegian Priorities and Activities Carbon Capture and Storage Jostein Dahl Karlsen Advisor Mini Norway 2nd Meeting CSLF Technical Comittee 20 January 04 Rome
Outline of Presentation Main Elements; Domestic Policy Issues - in light of energy situation and emissions National Technology Agenda - in light of drivers for carbon capture and storage
Norwegian Energy Situation
Total Energy Production & Final Consumption 250 200 Mtoe 150 100 Bio Coal, Coke Electricity Natural Gas Oil 50 0 Total Energy Production Total Final Energy Consumption
Production and net export of crude oil in 2002 incl. NGL Production Net export Saudi Arabia 8,70 Saudi Arabia 7,41 USA 8,10 Russia 4,21 Russia Iran Mexico Norway China Venezuela Canada UAE 3,73 3,56 3,41 3,29 3,04 2,75 2,58 6,98 Norway Iran Venezuela UAE Nigeria Iraq Kuwait Mexico 3,22 2,62 2,55 2,44 2,18 1,94 1,79 1,63 0 5 10 mill b/d 0 2 4 6 8 mill b/d Source: Petroleum Economics
Forecasted Hydrocarbon Production 300 250 mill scm oe 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Oil Gas NGL Condensate Source: NPD/M
Sources of Norwegian CO 2 emissions, 2001 Other industrial processes 17 % Costal traffic and fishing 9 % Road traffic 23 % Heating 18 % Other mobile sources 5 % Petroleum operations 28 % Source Statstics Norway/S
Total emissions of CO 2 from the Norwegian petroleum sector 16 14 12 Mill tonnes 10 8 6 4 2 0 1990 1994 1998 2002 2006 2010 2014 Source: MPE/N
Need for New Generating Capacity Need for improved security of power supply and new generating capacity which is not based on hydro The Norwegian Government aim to increase the share of natural gas to power generation in an environmentally sound way Increased efforts to advance gas-fired power plants with CO 2 capture and storage is a main element in the Norwegian Government's energy policy
National Technology Agenda and Activities
Carbon Capture and Storage Drivers Main Motivations; -Control cost, risks and perceptions through: a) Radical Innovation for Carbon Capture Optimal Business Models for Linking Sources to Sinks b) Bridging of knowledge gaps related to the sub surface, CO2 injection and logistics through advanced monitoring and development of codes and standards for good practice
KLIMATEK - the Norwegian Climate Technology R&D Programme Aim; stimulate technology for GHG reduction in oil and gas production and processing and energy intensive industries Priority area: new and improved technologies for gas fired power production with CO2 capture and storage co-operation between industry, university and research institutes in Norway and internationally Activities during 1997-2006:
Ongoing projects: CO2 Capture Short term R & D Membrane technology development and testing for natural gas power production Long term R&D: New CO2 capture concepts: membrane separation, combustion of enriched fuels, novel absorption/adsorption processes, advanced power cycles etc Co-production of power and hydrogen from natural gas with CO2 capture using a metal oxide recycling and fuel-cell
Role of Fossil Hydrogen in Carbon Capture H2 CO2 (by-product) Gain: Virtually free CO2 source
Existing H2 CO2 Production, Transportation and Use Norsk Hydro Continental Europe Experience; H2 derived from a o Ammonia production, Fertilizer industry CO2 sold to Beverages Industry etc. Addtional H2 large scale production in world wide refineries
Nat Gas Hydrogen Power CO2 EOR The Grane/Hydrokraft Project Grane oil field Project Grounded due to Prohibitive CO2 Reservoir Uncertaintie
Sleipner; start of injection: 1996 CO2 tax introduced 1992 1 million tons of CO2 injected annually
Sleipner Technology Confidence Build up
Saline Aquifer CO2 Storage project Statoil BP ExxonMobil TotalFinaElf Norsk Hydro Vattenfall BGS BRGM GEUS IFP NITG-TNO SINTEF IEA Greenhouse Gas R&D Programme Schlumberger Research N, Dk, Nl, Fr & Uk Authorities, US DOE
SACS goals: Verify under what circumstances CO 2 storage in an aquifer is safe and reliable Validate models for geology, geochemistry, geophysics and reservoir tools Initiate new R&D related to above topics Start development of "Manual of Good Practice"
SACS Project 1998-2002 WHAT WE DID ACHIEVE: 3D Seismic proven, Gravimetry tested Reservoir simulation tools partly proven Geology and Geochemistry of Utsira mapped Reason to expect the CO2 stay for thousands of years WHAT S NEXT? CO2STORE 2003 2005: Continued study of CO2 in Utsira 4 Field Cases in DK, DE, UK and NO
Summary Points for observation Managing CO2 sub surface issues is an ultimate challenge for risk aversion and negative public perception mitigation Project owners key stake holders in financing and integration of CSLF carbon storage (and capture) projects Contractual party consent to obtain CSLF project listing core
Summary CSLF Identification of suitable collaborative RD & D key to CSLF s progress on technical issues Potential CSLF Value Added proposition exist Leverage of regional and local resources through information exchange and accumulation of monitoring experience one alternative priority